LP Reports Fourth Quarter and Year End 2016 Results

NASHVILLE, Tenn.--(BUSINESS WIRE)--Louisiana-Pacific Corporation (LP) (NYSE: LPX) reported today results
for the fourth quarter and year ended December 31, 2016, which included
the following:

Total net sales for the fourth quarter of $550 million, 19 percent
higher than the year ago quarter. Total net sales for the year were
$2.2 billion, 18 percent higher than the previous year.

Income from continuing operations for the fourth quarter was $43
million ($0.29 per diluted share) and income of $150 million ($1.03
per diluted share) for the year.

Non-GAAP adjusted income from continuing operations was $32.8 million
($0.23 per diluted share) for the fourth quarter and income of $130
million ($0.89 per diluted share) for the year.

Adjusted EBITDA from continuing operations for the fourth quarter was
$85 million compared to $34 million in the fourth quarter of 2015. For
the year, EBITDA from continuing operations was $346 million compared
to $67 million the previous year.

Cash and cash equivalents were $659 million as of December 31, 2016.

“Our fourth quarter ended very strong which added to an outstanding 2016
for LP,” said Curt Stevens, CEO. “Siding revenues were nearly 20 percent
higher in Q4 of this year compared to Q4 of last year while adjusted
EBITDA for this business was over 50 percent higher. Coupled with over a
400 percent increase in OSB earnings this quarter compared to last year,
the full year ended with an 18 percent increase in revenues, an EPS from
continuing operations of $1.03 and adjusted EBITDA of $346 million,”
Stevens added.

FOURTH QUARTER RESULTS

For the quarter ended December 31, 2016, LP reported net sales of $550
million, up from $463 million in the fourth quarter of 2015. For the
fourth quarter, the company reported operating income of $56 million as
compared to income of $1 million in 2015. For the fourth quarter of
2016, LP reported income from continuing operations of $43 million, or
$0.29 per diluted share, compared to a loss of $7 million, or $0.05 per
diluted share for the fourth quarter of 2015. Adjusted EBITDA from
continuing operations for the fourth quarter of 2016 was $85 million
compared to $34 million in the fourth quarter of 2015.

YEAR END RESULTS

For the year ended December 31, 2016, LP reported net sales of $2.2
billion. For the year ended 2016, the company reported an operating
income of $204 million compared to a loss of $63 million in 2015. For
2016, LP reported an income from continuing operations of $150 million,
or $1.03 per diluted share, compared to a loss of $86 million, or $0.60
per diluted share, for 2015. Adjusted EBITDA from continuing operations
for the year was $346 million compared to $67 million for 2015.

ORIENTED STRAND BOARD (OSB) SEGMENT

LP's OSB segment manufactures and distributes OSB structural panel
products. The OSB segment reported net sales for the fourth quarter of
2016 of $276 million, up 34 percent compared to $206 million of net
sales in the fourth quarter of 2015. For the fourth quarter of 2016, the
OSB segment reported operating income of $60 million compared to income
of $11 million in the fourth quarter of 2015. For the fourth quarter,
adjusted EBITDA from continuing operations for this segment was $74
million compared to $25 million in the fourth quarter of 2015. For the
fourth quarter of 2016 as compared to the fourth quarter of 2015, sales
volumes increased 15 percent and sales price increased 16 percent. The
increase in selling price favorably impacted operating results and
adjusted EBITDA from continuing operations by approximately $39 million
for the quarter as compared to the fourth quarter of 2015.

For the full year, OSB reported sales of $1 billion, up 27 percent from
the prior year and had operating income of $186 million compared to a
loss of $46 million in 2015. Adjusted EBITDA for 2016 was $246 million
compared to $12 million in 2015. For the year, sales volumes increased 3
percent and sales prices increased 25 percent. The increase in selling
price favorably impacted operating results and adjusted EBITDA from
continuing operations by approximately $204 million for the year as
compared to 2015.

SIDING SEGMENT

LP’s Siding segment consists of SmartSide® siding as well as LP’s
prefinished CanExel® siding line. These products are used in new
construction as well as in the repair and remodeling markets. The Siding
segment reported net sales of $169 million in the fourth quarter of 2016
compared to $141 million of net sales in the fourth quarter of 2015. For
the fourth quarter of 2016, the Siding segment reported operating income
of $22 million compared to $14 million in the fourth quarter of 2015.
For the fourth quarter, adjusted EBITDA from continuing operations for
this segment was $29 million compared to $19 million in the fourth
quarter of 2015. The increase in OSB sales prices sold in this segment
accounted for approximately $1 million of the increase in both operating
results and adjusted EBITDA from continuing operations.

For the full year, Siding reported sales of $752 million, up 18 percent
from the prior year and had operating income of $126 million compared to
$93 million in 2015. Adjusted EBITDA from continuing operations for 2016
was $154 million compared to $114 million in 2015. The increase in OSB
sales prices sold in this segment accounted for approximately $10
million of the increase in both operating results and adjusted EBITDA
from continuing operations.

ENGINEERED WOOD PRODUCTS SEGMENT (EWP)

The EWP segment is comprised of I-Joist (IJ), Laminated Veneer Lumber
and Laminated Strand Lumber (LVL and LSL). The EWP segment reported net
sales in the fourth quarter of 2016 totaling $66 million, down 11
percent from the year-ago quarter. Operating loss decreased to $4
million for the fourth quarter of 2016 from break even in the fourth
quarter of 2015. For the fourth quarter, the EWP segment showed a
decrease of $4 million in adjusted EBITDA from continuing operations as
compared to the same quarter of 2015.

For the full year, EWP reported sales of $297 million, up 4 percent from
the prior year and an operating loss of $6 million in 2016 as compared
to a loss of $7 million in 2015. Adjusted EBITDA for 2016 was $8 million
for 2016 compared to $6 million in 2015.

SOUTH AMERICA

The South America segment is comprised of facilities in Chile and
Brazil. The segment reported net sales in the fourth quarter of 2016 of
$34 million, up 1 percent from the fourth quarter of 2015. Operating
income was $2 million for the fourth quarter of 2016, a slight decrease
from the fourth quarter of 2015. For the fourth quarter, LP reported
adjusted EBITDA from continuing operations in this segment of $4 million
compared to $5 million from the fourth quarter of 2015.

For the full year, South America reported sales of $137 million, up 1
percent from the prior year and operating income of $17 million compared
to operating income of $10 million in 2015. Adjusted EBITDA for 2016 was
$26 million compared to $18 million in 2015.

COMPANY OUTLOOK

“I am confident that housing will continue to grow over the next several
years as household formations increase and both job and wage growth
become stronger,” continued Stevens. “With our new leadership in place,
our facilities running well and our sales force focused on growth, 2017
should be a good year for LP,” concluded Stevens.

About LP

Louisiana-Pacific Corporation is a leading manufacturer of
quality engineered wood building materials including OSB, structural
framing products, and exterior siding for use in residential,
industrial and light commercial construction. From manufacturing
facilities in the U.S., Canada, Chile and Brazil, LP products are sold
to builders and homeowners through building materials distributors and
dealers and retail home centers. Founded in 1973, LP is headquartered in
Nashville, Tennessee and traded on the New York Stock Exchange under
LPX. For more information on the company as well as a reconciliation of
non-GAAP results, visit www.lpcorp.com.

FORWARD LOOKING STATEMENTS

This news release contains statements concerning Louisiana-Pacific
Corporation's (LP) future results and performance that are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The matters addressed in these statements
are subject to a number of risks, uncertainties and assumptions that may
cause actual results to differ materially from those projected,
including, but not limited to, the effect of general economic
conditions, including the level of interest rates and housing starts,
market demand for the company's products, and prices for structural
products; the availability, cost and other terms of capital; the
efficiency and consequences of operations improvement initiatives and
cash conservation measures; the effect of forestry, land use,
environmental and other governmental regulations; the ability to obtain
regulatory approvals; and the risk of losses from fires, floods and
other natural disasters. These and other factors that could cause or
contribute to actual results differing materially from those
contemplated by such forward-looking statements are discussed in greater
detail in the company's Securities and Exchange Commission filings.

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

FINANCIAL AND QUARTERLY DATA

(Dollar amounts in millions, except per share amounts) (Unaudited)

Quarter Ended December 31,

Year Ended December 31,

2016

2015

2016

2015

Net sales

$

550.0

$

462.9

$

2,233.4

$

1,892.5

Income (loss) from operations

$

56.0

$

1.4

$

204.0

$

(63.3

)

Income (loss) from continuing operations before taxes and equity in
income of unconsolidated affiliates

$

48.6

$

(5.0

)

$

164.9

$

(95.4

)

Non-GAAP adjusted income (loss) from continuing operations

$

32.8

$

0.8

$

129.5

$

(46.1

)

Income (loss) from continuing operations

$

42.7

$

(7.4

)

$

150.3

$

(86.0

)

Net income (loss)

$

42.2

$

(7.6

)

$

149.8

$

(88.1

)

Income (loss) from continuing operations per share - diluted

$

0.29

$

(0.05

)

$

1.03

$

(0.60

)

Net income (loss) per share - diluted

$

0.29

$

(0.05

)

$

1.03

$

(0.62

)

Weighted average shares of common stock outstanding - basic

143.7

142.7

143.4

142.4

Weighted average shares of common stock outstanding - diluted

145.5

142.7

145.3

142.4

CONSOLIDATED STATEMENTS OF INCOME

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

(AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS (UNAUDITED)

Quarter Ended December 31,

Year Ended December 31,

2016

2015

2016

2015

Net sales

$

550.0

$

462.9

$

2,233.4

$

1,892.5

Operating costs and expenses:

Cost of sales

422.8

395.3

1,724.0

1,682.7

Depreciation and amortization

26.8

24.0

112.8

101.9

Selling and administrative

47.8

37.9

183.6

152.8

(Gain) loss on sale or impairment of long-lived assets, net

(9.4

)

0.6

(8.4

)

2.1

Other operating credits and charges, net

6.0

3.7

17.4

16.3

Total operating costs and expenses

494.0

461.5

2,029.4

1,955.8

Income (loss) from operations

56.0

1.4

204.0

(63.3

)

Non-operating income (expense):

Interest expense, net of capitalized interest

(5.8

)

(8.1

)

(32.1

)

(31.2

)

Investment income

1.8

1.5

8.2

4.4

Other non-operating items

(3.4

)

0.2

(15.2

)

(5.3

)

Total non-operating income (expense)

(7.4

)

(6.4

)

(39.1

)

(32.1

)

Income (loss) from continuing operations before income taxes and
equity in income of unconsolidated affiliates

48.6

(5.0

)

164.9

(95.4

)

Provision (benefit) for income taxes

6.7

5.0

19.8

(2.7

)

Equity in income of unconsolidated affiliates

(0.8

)

(2.6

)

(5.2

)

(6.7

)

Income (loss) from continuing operations

42.7

(7.4

)

150.3

(86.0

)

Loss from discontinued operations before taxes

(0.8

)

(0.3

)

(0.8

)

(3.2

)

Benefit for income taxes

(0.3

)

(0.1

)

(0.3

)

(1.1

)

Loss from discontinued operations

(0.5

)

(0.2

)

(0.5

)

(2.1

)

Net income (loss)

$

42.2

$

(7.6

)

$

149.8

$

(88.1

)

Net income (loss) per share of common stock (basic):

Income (loss) from continuing operations

$

0.30

$

(0.05

)

$

1.05

$

(0.60

)

Loss from discontinued operations

(0.01

)

—

(0.01

)

(0.02

)

Net income (loss) per share - basic

$

0.29

$

(0.05

)

$

1.04

$

(0.62

)

Net income (loss) per share of common stock (diluted):

Income (loss) from continuing operations

$

0.29

$

(0.05

)

$

1.03

$

(0.60

)

Loss from discontinued operations

—

—

—

(0.02

)

Net income (loss) per share - diluted

$

0.29

$

(0.05

)

$

1.03

$

(0.62

)

Weighted average shares of stock outstanding - basic

143.7

142.7

143.4

142.4

Weighted average shares of stock outstanding - diluted

145.5

142.7

145.3

142.4

CONSOLIDATED BALANCE SHEET

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

(AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

December 31,

2016

2015

ASSETS

Current assets:

Cash and cash equivalents

$

659.3

$

434.7

Receivables, net of allowance for doubtful accounts of $1.0 million
and $1.1 million at December 31, 2016 and 2015